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Home › Products › Cygnet Tax › GST Compliance › ISD – Input Service Distributor

Streamline ITC Distribution accurately across GSTNs with Cygnet!

Purpose-Built for Enterprises to Automate ISD Credit Allocation and Ensure GST Compliance with Precision

The recent GST amendments make ISD mandatory for

  • Distributing ITC 
  • Increasing the need for businesses to comply  
  • Avoid penalties 
See how it works!

A common paltform for filing and reconciling GSTR 6 & 6A return

cygnet finalyze

Current Hurdles

Invoice Mismanagement

Incorrect classification of ISD and regular invoices. 

Vendor Coordination

Ensuring suppliers comply with ISD rules.

Complex Distribution 

Difficulty in allocating ITC across branches. 

Reconciliation Issues 

Gaps in aligning ISD and regular invoices. 

Why ISD Matters in 2025!

Starting April 1, 2025, ISD registration became mandatory for businesses availing shared services across multiple GST registrations.

Why this matters

  • Misallocated ITC – Can trigger GSTR mismatches and input credit denial
  • Increased GST audit scrutiny – especially for large enterprises with high inter-unit transactions.
  • Non-compliance – may result in penalties, interest, and blocked ITC.
Image

What’s slowing down your GST credit flow?

cygnet finalyze

How does your ISD Process Score?

Challenge Your Org Industry Standard
GSTIN Credit Allocation Accuracy Poor High
Filing Timeliness (GSTR-6) Avg High
Audit Readiness Low High
ERP Integration None Full

Optimize Your Input Tax Credit Distribution with Cygnet.One 

Cygnet provides a scalable, automated solution for managing ISD compliance, vendor communication, real-time reconciliation and distribution, ensuring seamless ITC distribution across location

Where we step in

  1. 01 Automating the reconciliation between invoicing done on regular and ISD registrations.
  2. 02 Running intimation to vendors (and payment block) for incorrect reporting on auto-pilot.
  3. 03 Deploying a scalable solution to compute and generate distribution invoices for eligible as well as ineligible credits:
Image

Features

ISD invoice generation

Real-time ITC reconciliation

GSTR-6 automation

ERP/API integration

Here’s what you’ll achieve

Achieve up to 99.5% precision in GSTIN-level input credit mapping

Auto-aligns with GSTR-6 rules and reduces risk of audit triggers

Cut down filing cycle time by 60% with automation and validations

Eliminate spreadsheets—automate end-to-end allocation workflows

Get traceable audit logs with role-based access and dashboards

Seamless plug-in to SAP, Oracle, Tally & more for data continuity

Access Resources

Case Study
Case Study

Reduced man-hours by automating e-Invoice and e-Way bill generation for a sugar manufacturer

Reduced man-hours by automating e-Invoice and e-Way bill generation for a sugar manufacturer.

Read More Explore Full Story
Blog
Blog

FAQs for Input Service Distributor (ISD)

Every question answered about Input Service Distributor (ISD). Read on to learn more.

Read More Explore Full Story
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eBook

e-Invoicing compliance Timeline

Electronic invoicing regulations are rapidly becoming the standard across the European Union (EU) and globally, driving procurement standardization. Countries such as France, Poland, Spain, and Ukraine are preparing to introduce their e-invoicing regulations starting in 2023 and continuing in the years to come.

Read More Explore Full Story

What's new in Store?

Litigation Management Solution (LMS)

Read More

VAT return preparation and filing in Middle east

Read More

Tax determination

Read More

Invoice Management System

Read More

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